IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-25-00095.html

Quantity control reforms and the green transition

Author

Listed:
  • Takumi Haibara

    (Aichi University)

Abstract

The present paper offers an unconventional reform strategy that can mitigate the trade-off between the green transition and economic shocks. There are cases in which double tax cuts encourage a shift toward clean production without jeopardizing employment and/or overall taxed production. While the results depend on factor intensities, it can be argued that preserving output is more desirable than preserving employment, especially when implementing double tax cuts. The findings of this paper are particularly relevant for small open economies, where the scope for taxing dirty production is severely limited.

Suggested Citation

  • Takumi Haibara, 2025. "Quantity control reforms and the green transition," Economics Bulletin, AccessEcon, vol. 45(4), pages 1963-1971.
    • Handle: RePEc:ebl:ecbull:eb-25-00095
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I4-P170.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Takumi Haibara, 2023. "Three tax reforms with and without public pollution abatement," Economics Bulletin, AccessEcon, vol. 43(1), pages 574-582.
    2. Haibara, Takumi, 2012. "Alternative approaches to tax reform," Economics Letters, Elsevier, vol. 117(2), pages 408-410.
    3. Anderson, James E. & Neary, J. Peter, 2016. "Sufficient statistics for tariff reform when revenue matters," Journal of International Economics, Elsevier, vol. 98(C), pages 150-159.
    4. Takumi Haibara, 2024. "Revisiting Offsetting Tax Reductions," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 80(4), pages 359-379.
    5. Kaplow, Louis, 2006. "On the undesirability of commodity taxation even when income taxation is not optimal," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1235-1250, August.
    6. Hettige, Hemamala & Mani, Muthukumara & Wheeler, David, 2000. "Industrial pollution in economic development: the environmental Kuznets curve revisited," Journal of Development Economics, Elsevier, vol. 62(2), pages 445-476, August.
    7. Don Fullerton & Gilbert E. Metcalf, 2002. "Environmental Controls, Scarcity Rents, and Pre-existing Distortions," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 26, pages 504-522, Edward Elgar Publishing.
    8. Mayer, Wolfgang, 1991. "Endogenous labor supply in international trade theory : Two alternative models," Journal of International Economics, Elsevier, vol. 30(1-2), pages 105-120, February.
    9. Diamond, Peter A, 1998. "Optimal Income Taxation: An Example with a U-Shaped Pattern of Optimal Marginal Tax Rates," American Economic Review, American Economic Association, vol. 88(1), pages 83-95, March.
    10. Emran, M. Shahe, 2005. "Revenue-increasing and welfare-enhancing reform of taxes on exports," Journal of Development Economics, Elsevier, vol. 77(1), pages 277-292, June.
    11. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
    12. Goulder, Lawrence H., 2013. "Climate change policy's interactions with the tax system," Energy Economics, Elsevier, vol. 40(S1), pages 3-11.
    13. Michael S. Michael & Panos Hatzipanayotou, 1999. "General Equilibrium Effects of Import Constraints under Variable Labour Supply, Public Goods and Income Taxation," Economica, London School of Economics and Political Science, vol. 66(263), pages 389-401, August.
    14. Panos Hatzipanayotou & Michael Michael, 1995. "Tariffs, quotas, and voluntary export restraints with endogenous labor supply," Journal of Economics, Springer, vol. 62(2), pages 185-201, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nikos Tsakiris & Panos Hatzipanayotou & Michael S. Michael, 2019. "Border tax adjustments and tariff‐tax reforms with consumption pollution," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 21(6), pages 1107-1125, December.
    2. Takumi HAIBARA & Hiroshi OHTA, 2011. "A New Proposal of Ecological Tax Reform," GSICS Working Paper Series 24, Graduate School of International Cooperation Studies, Kobe University.
    3. Blumkin, Tomer & Ruffle, Bradley J. & Ganun, Yosef, 2012. "Are income and consumption taxes ever really equivalent? Evidence from a real-effort experiment with real goods," European Economic Review, Elsevier, vol. 56(6), pages 1200-1219.
    4. Stiglitz, Joseph E., 2018. "Pareto efficient taxation and expenditures: Pre- and re-distribution," Journal of Public Economics, Elsevier, vol. 162(C), pages 101-119.
    5. Bierbrauer Felix J., 2016. "Effizienz oder Gerechtigkeit?: Ungleiche Einkommen, ungleiche Vermögen und Optimale Steuern," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 17(1), pages 2-24, April.
    6. Theodore Palivos & Nikos Tsakiris, 2011. "Trade and Tax Reforms in a Cash‐in‐Advance Economy," Southern Economic Journal, John Wiley & Sons, vol. 77(4), pages 1014-1032, April.
    7. Michael Michael & Panos Hatzipanayotou, 2013. "Pollution and reforms of domestic and trade taxes towards uniformity," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(5), pages 753-768, October.
    8. Thomas Piketty & Emmanuel Saez, 2012. "Optimal Labor Income Taxation," NBER Working Papers 18521, National Bureau of Economic Research, Inc.
    9. Yukihiro Nishimura, 2025. "Supplementary Commodity Taxes, Labor Tax, and the Tax-mix," Discussion Papers in Economics and Business 25-08-Rev., Osaka University, Graduate School of Economics, revised Mar 2026.
    10. Peter Diamond & Emmanuel Saez, 2011. "The Case for a Progressive Tax: From Basic Research to Policy Recommendations," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 165-190, Fall.
    11. Boadway,Robin & Cuff,Katherine, 2022. "Tax Policy," Cambridge Books, Cambridge University Press, number 9781108949453, Enero-Abr.
    12. Jacobs, Bas & Boadway, Robin, 2014. "Optimal linear commodity taxation under optimal non-linear income taxation," Journal of Public Economics, Elsevier, vol. 117(C), pages 201-210.
    13. Antoine Ferey & Benjamin B. Lockwood & Dmitry Taubinsky, 2024. "Sufficient Statistics for Nonlinear Tax Systems with General Across-Income Heterogeneity," American Economic Review, American Economic Association, vol. 114(10), pages 3206-3249, October.
    14. Koehne, Sebastian & Sachs, Dominik, 2022. "Pareto-improving reforms of tax deductions," European Economic Review, Elsevier, vol. 148(C).
    15. Pang, Yu, 2019. "Taxing pollution and profits: A bargaining approach," Energy Economics, Elsevier, vol. 78(C), pages 278-288.
    16. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
    17. Michael S. Michael & Panos Hatzipanayotou, 2013. "Cooperative and Non-Cooperative Equilibrium Consumption Taxes in the Presence of Cross-Border Pollution," CESifo Working Paper Series 4501, CESifo.
    18. Gian Maria Tomat, 2018. "The elasticity of personal income: evidence from survey data," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 433-462, August.
    19. Siegmeier, Jan & Mattauch, Linus & Edenhofer, Ottmar, 2018. "Capital beats coal: How collecting the climate rent increases aggregate investment," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 366-378.
    20. Etienne Lehmann & Eddy Zanoutene, 2026. "Distortions for Nothing Optimal Taxation of (Un)Distributed Profits ," Working Papers hal-05451287, HAL.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • F1 - International Economics - - Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-25-00095. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.